Jeff Sherman of DoubleLine Capital - The Goldilocks Economy: How Long Can it Last

Episode • Feb 13, 2024 • 1h 2m

As DoubleLine’s Deputy Chief Investment Officer, Jeffrey Sherman oversees and administers DoubleLine’s Investment Management sub-committee coordinating and implementing policies and processes across the investment teams. He also serves as lead portfolio manager for multi-sector and derivative-based strategies. Mr. Sherman is a member of DoubleLine’s Executive Management and Fixed Income Asset Allocation Committees. He can be heard regularly on his podcast “The Sherman Show” (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) where he interviews distinguished guests, giving listeners insight into DoubleLine’s current views. In 2018, Money Management Executive named Jeffrey Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. He was a statistics and mathematics instructor at both the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the CFA LA/USC Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from the Claremont Graduate University. Mr. Sherman is a CFA® charterholder.

Key Takeaways

[3:45] - Jeff’s professional background and career highlights.
[07:06] - Jeff helped found DoubleLine in 2009 – what were some of the joys and challenges they faced while starting the company and what sets them apart as a firm?
[10:20] - How long might the Goldilocks economy be able to last?
[14:22] - What is DoubleLine’s view on inflation and how might this impact what The Fed does and longer term interest rates?
[20:55] - Why not just buy treasury bills and chill?
[23:45] - How should investors be thinking about the upcoming presidential election and how might they be better prepared for the outcome?
[26:05] - How concerned is Jeff about the deficit and what might it mean for the economy and the markets?
[29:50] - How should investors be thinking about their fixed income allocations?
[35:30] - Jeff’s current thoughts on the dollar and also investing overseas.
[38:25] - Jeff’s thoughts on fixed income ETFs and the future of the ETF industry in general.
[41:35] - How might the Bitcoin ETFs affect the ETF industry and Bitcoin itself?
[44:32] - How have skill sets needed to change, if at all, for new people entering the industry?
[49:56] - Jeffs’s favorite investment idea for 2024.

Quotes

[12:25] - “So, when I look at the economy right now, it’s hard to see it being derailed without the labor market. Now, are there signs of cracks in the economy? Absolutely, we can talk about that, but ultimately I think that the recession at this stage has been delayed a bit." ~ Jeff Sherman

[25:08] - “From our standpoint, we don’t see a lot of election risk in markets unless it’s some exogenous policy that we can’t see at this point, and by definition, you can’t play for that. So, are you going to give up on the market just because you think your party isn’t going to win the election?" ~ Jeff Sherman

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Compliance Code: 0306-OPS-2/8/2024

Disclosure(s) ~ Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

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